EUROPE GAS-Prices mostly gain in highly volatile market

Nov 2 (Reuters) - British and European wholesale gas prices
were mixed on Tuesday morning, with several key British
contracts posting gains but the European benchmark easing, as
uncertainty over Russian gas flows to Europe kept prices
volatile.

* The day-ahead British gas price was up 10
pence at
1.65 pounds per therm by 1128 GMT, while the within-day contract
gained 13 pence to 1.64 pounds/therm.

* The Dutch day-ahead gas contract was up 2.20
euros
at 66.60 euros per megawatt hour (MWh).

* Forecasts of rising heating demand amid cooler weather and
reduced Russian flows were bullish factors for Europe, analysts
at Refinitiv said.

* In the UK, a drop in gas for power demand of 21 million
cubic
metres per day for Wednesday amid more wind was bearish, they
added.

* The gains in the British prompt market were "nothing
decisive"
but might reflect the discount to the month-ahead, a trader
said.

* The British December contract was up 4.03
pence at
1.715 pounds/therm.

* However, the Dutch December gas price was
down 1.75
euros at 66.40 euros per megawatt hour (MWh).

* Prices rose strongly on Monday morning as flows of gas on
the
Yamal-Europe from Russia pipeline reversed to go east into
Poland at the German entry point of Mallnow.

* Prices fell late on Monday amid profit-taking and with
Poland
confirming it was receiving contractual volumes from Gazprom,
analysts said.

* Flows remain reversed on Tuesday.

* "The drop in gas flows from Russia to Europe during the
weekend
goes in the opposite direction of President Putin's promise for
an increase in gas exports and suggests that an imminent
improvement in European gas storage levels is all but certain,"
analysts at Jefferies said in a note.

* Gazprom-controlled storage in Europe remains at around a
third
of levels seen a year ago, with President Putin giving orders to
fill the sites from Nov. 8, when domestic re-stocking is
expected to end.

* The question remained whether Russia would make these
volumes
available via the Nord Stream 2 (NS2) route only, which still
lacks regulatory approval from Germany to start operating,
Jefferies' analysts said.

* Meanwhile, Gazprom did not book additional quarterly
capacity at
several European border points from Russia at an auction on
Tuesday.

* The market would remain volatile with traders cautious
ahead of
Nov. 8, another trader said.

* In other markets, the benchmark Dec-21 EU carbon
contract was up 1.34 euros at 58.21 euros a tonne.
(Reporting by Nora Buli, editing by Ed Osmond)